Tax policy for export processing enterprises in Vietnam that hire domestic processing enterprises?

Hello editor, My company is an export processing enterprise that delivers all materials to hire a domestic FDI enterprise to reprocess all stages. The company then receives the products and exports them to foreign countries. So, can the company hire a domestic company to do the full processing?

Customs procedures for cases where an export processing enterprise hires a domestic enterprise to do the processing, and the export processing enterprise receives processing for a domestic enterprise?

Pursuant to Clause 1, Article 76 of Circular 38/2015/TT-BTC (amended and supplemented in Clause 52, Article 1 of Circular 39/2018/TT-BTC) stipulating on goods contracted by domestic EPEs to domestic enterprises. public regulation:

- Domestic enterprises shall carry out customs procedures according to regulations on processing goods for foreign traders specified in Sections 1 and 2, Chapter III of this Circular. As for the location of customs procedures, domestic enterprises may choose to do so at the Customs Sub-Department managing the EPE. When declaring the information item "internal management number" on the customs declaration, domestic enterprises must declare as follows: #&GCPTQ;

- EPEs do not have to go through customs procedures when bringing goods into the country for processing and receiving processed products from inland.

In case the goods are brought from the EPE to the domestic market for processing, warranty or repair but do not receive the goods, the processor (domestic enterprise) must register a new declaration to change the use purpose. used in accordance with the provisions of Chapter II of this Circular.

- Goods processed by EPEs for domestic enterprises:

+ Domestic enterprises shall carry out customs procedures according to regulations on ordering goods to be processed overseas in Sections 1 and 3, Chapter III of this Circular. As for the location of customs procedures, domestic enterprises may choose to do so at the Customs Sub-Department managing the EPE. When declaring the information item "internal management number" on the customs declaration, domestic enterprises must declare as follows: #&GCPTQ;

+ EPEs do not have to go through customs when receiving goods from inland for processing and returning processed products to inland.

- For goods processed by EPEs hiring other EPEs: Outsourcing EPEs and EPEs receiving processing are not required to carry out customs procedures when delivering and receiving goods for processing contracts and processed products.

- For goods processed by EPEs abroad, customs procedures shall be carried out in accordance with regulations on goods ordered to be processed abroad as prescribed in Section 3 of this Circular.

- In cases where customs procedures are not followed in this Article, the EPE is responsible for keeping and presenting documents related to the processing and production of export goods as prescribed in Article 60 of the Law on Customs. Article 37 of Decree 08/2015/ND-CP (except for notification of production facilities).

Tax policy for export processing enterprises in Vietnam that hire domestic processing enterprises?

What is the tax policy for outsourcing export processing enterprises and domestic enterprises receiving outsourcing?

Based on the reply of the General Department of Customs in Section 20, the Questionnaire Table issued together with Official Letter 5529/TCHQ-TXNK in 2021 clearly states as follows:

- For export processing enterprises:

Goods imported from abroad into EPEs, EPEs are allowed to hire domestic enterprises to re-process. Export processing enterprises are not required to go through customs procedures when bringing goods into the inland for processing and receiving processed products from domestic enterprises as prescribed in Clause 1, Article 76 of Circular No. 38/2015/TT- BTC is amended and supplemented in Clause 52, Article 1 of Circular No. 39/2018/TT-BTC. Goods of EPEs sent for domestic processing are not subject to import tax or VAT.

- For domestic enterprises:

Domestic enterprises shall carry out customs procedures according to regulations on processing goods for foreign traders. Policy on import tax and VAT applies to goods imported for processing abroad.

Khanh Linh

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